Laserfiche WebLink
� ��}(�I3�'S <br />INVESTC3►RS SERVICE <br />New Issue: Moody's assigns A1 rating to the City of Pequot Lakes' <br />(MN) $1.2 million General Obligation Utility Refunding Bonds, Series <br />2012A <br />Global Credit Research - 03 Jul 2012 <br />PEQUOT LAKES (CITY OF) MN <br />Cities (including Towns, Vllages and Townships) <br />MN <br />Moody's Rating <br />ISSUE <br />RATING <br />Limited General Obligation Utility Refunding Bonds Series 2012A A1 <br />Sale Amount $1,270,000 <br />Expected Sale Date 07/10/12 <br />Rating Description General Obligation Utility Refunding_ <br />Moody's Outlook NOO <br />Opinion <br />NOTE: On July 5, 2012, the report was revised as follows: The headline and the first sentence of the opinion have <br />� been revised to reflect the following correct sale description: General Obligation Utiliry Refunding Bonds, Series <br />2012A Revised release follows. <br />NEW YORK, July 03, 2012 —Moody's Investors Service has assigned an initial A1 rating to the City of Pequot Lakes' <br />(MN) $1.2 million Limited General Obligation Utiliry Refunding Bonds Series 2012A Post-sale the city will have $1.3 <br />million in outstanding General Obligation debt. <br />SUMMARY RATINGS RATIONALE <br />The Series 2012 bonds are secured by the city's General Obligation tax pledge. In addition, the city pledges the net <br />revenues of the city's Water Fund. Proceeds will be used to refund the January 1, 2013 through January 1, 2040 <br />maturities of the city's General Obligation Bonds, Series 2000�4 The assignment of the initial A1 reflects the city's <br />modestly sized tax base with significant recent declines, below average demographic profile, solid financial position, <br />and modest debt burden. <br />STRENGTHS <br />- Solid financial position with revenue raising fle�ability and low dependence on state aid <br />- Modest debt burden with affordable debt service payments <br />CHALLENGES <br />- Modest tax base with significant recent declines and some concentration in top payers <br />- Below average demographic profile <br />DETAILED CREDIT DISCUSSION <br />� MODESTLY SIZED TPJBASE IN CENTRAL MINNESOTA; TOURISM BASED LOCAL ECONOMY <br />